Fintech News Issue #170
June 7th, 2018

Regtech will be a huge game changer for financial service providers, key takeaways from the 2018 Internet Trends Report and the most promising startups emerging from the Fintech Spacerace 2018. Enjoy another collection of the best articles in fintech from the past week.
– Michael and the FinTech Weekly team

Banks globally are now spending in excess of $270 billion per year on compliance and regulatory obligations, having 10–15% of their staff dedicated to compliance on average. Compliance costs for FIs amount to substantial parts of total expenses, with a negative correlation between the size of the institution and the percentage of total costs.

FinTech Articles

Last century, one of most dramatic changes to the banking ecosystem was the integration of digital technology, both with back office and customer-facing systems. Today, we are entering a whole new phase.

Another day talking culture, leadership and change for digital, and a fascinating review of the five things banks mess up when considering partnering. This presentation was from the Chief Digital Officer (CDO) of a major European bank.

In this article, Part 1 of the latest in his series exclusive to Data Makes Possible, Dr. Kirk Borne, Principal Data Scientist for Booz Allen Hamilton, explains the importance and value proposition of improving the human experience in the digital enterprise, and why the year of experience must include customers, end-users, employees, and any other stakeholders.

I’ve got caught in a few discussions recently with people who tell me Ant Financial are Chinese. They’re not. Neither is Alibaba and, if you think they’re just Chinese, you’re going to miss a huge change in the next decade. Ant Financial is an open marketplace of apps, APIs and analytics, that I’ve been describing for a while as the Open Sourced Financial Marketplace.

Citigroup spent $8 billion on technology in 2017, [and] JPMorgan Chase said it will spend $10.8 billion on technology in 2018. In previous years the bank has said that roughly a third of its tech budget is spent on new investments.

Focus too much on digital banking and you risk alienating consumers who prefer traditional channels like branches. But if you don’t invest enough in your digital experience, younger consumers may take their business elsewhere. How do you strike the right balance?

Thanks to advancements in security technology and the changing habits of customers, the payment industry is evolving rapidly. With the growing Millennial and Gen X population, the popularity of mobile payments and wallets have increased along with regularity of biometric authentication. This infographic highlights seven trends for the future of payment processing that we’re preparing for, and that you’d be wise to prepare for, too.

Nothing like a well-timed meeting between two political powerhouses to showcase the importance of India to Britain post-Brexit. But while last month’s carefully crafted photo op between May and Modi inevitably grabbed the limelight, it is by no means the only blossoming relationship between the two nations.

According to the 2018 Global Retail Banking Report from The Economist Intelligence Unit and Temenos, global banking organizations are focusing on advanced technologies, customer experience and security of data in their efforts to keep pace with consumer expectations. At the same time, many have conceded the battle for payments to fintech and big tech organizations.